TDS Reports Q1 Revenue Decline, $10M Loss Amid Strategic Transactions

Telephone and Data Systems (TDS) reported a first-quarter 2025 net loss of $10 million, a reversal from last year's profit, as total operating revenues fell 9% year-over-year to $1.15 billion, missing market expectations. Both its wireless (UScellular) and wireline (TDS Telecom) segments experienced revenue and profitability declines, though UScellular saw improvements in postpaid handset metrics and a rise in third-party tower rental revenues. TDS continues to execute its fiber broadband expansion, delivering 14,000 new marketable addresses in the quarter. The company is in the process of selling UScellular’s wireless operations and select spectrum assets to T-Mobile, with additional spectrum sales to Verizon, AT&T, and others expected to close by mid-2025. While some analysts project significant upside for TDS stock, valuation models like GuruFocus caution about possible downside, reflecting uncertainty amid the ongoing strategic transformation. Leadership maintains that foundational changes in remaining fiber and tower businesses will support TDS's long-term transformation.